Accounting 48 Ch. 21 Test V1 1. Adams Co. uses the following standard to produce a single unit of its product Variable overhead (2 hrs. @ $3/hr.) $6 Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is a. $6,000F b. $6,000U. c. $78,000u. d. $78,000F e $0.00 Use the following information to answer questions 2-5 BITCO has determined that its standard costs to produce a single unit of output is as follows: S540 0.5 hour at $12.00 per hour$6.00 $2.40 6 pounds at $0.90 per pound Direct materials Direct labor Manufacturing overhead 0.5 hour at $4.80 per hour During the latest month, the company purchased and used 58.000 pounds of direct materials at a price of $1.00 per pound to produce 10.000 units of output. Direct labor costs for the month totaled $56.350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10.400. 2. Based on BITCO's information, the direct materials price variance for the month was: a. b. C. d. e. $6,000 unfavorable $1,800 favorable $1,000 favorable $5,800 unfavorable $1,800 unfavorable 3. Based on ITCO's information, the direct materials quantity variance for the month was: a. $1,800 favorable c. $5,800 favorable e. $1,000 favorable b. $5,800 unfavorable d. $1,800 unfavorable 4. Based on BITCO's information, the direct labor rate variance for the month was: a. $1,200 favorable b. $3,650 favorable c. $2,450 favorable d. $3,650 unfavorable e. $1,200 unfavorable